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Gone are the days when you required minimum two persons to form a company. Now, you can register your company without involving any other person in the form of Private Limited Company. What this means for you? It means that along with the benefits of OPC, you also enjoy exemptions of Private Limited Company. The introduction of OPC in the legal system is a move that encourage micro businesses and entrepreneurships currently in a Proprietorship Form. Now, with the concept called OPC, everyone can have One Person Company registered.
This concept of OPC has been brought by the Companies Act, 2013 and it states that One Person Company is in the nature of a private company itself which has only one person as its member. At the time of incorporation, the Memorandum of Association must name a nominee for the sole member of an OPC. The minimum number of directors for an OPC is also one but you can always increase the number of directors. OPC provides the option of limited personal liability of proprietors (as opposed to unlimited liability in sole proprietorship). Businesses which currently run under the proprietorship model could get converted into OPC’s without any difficulty with the help of our CCL Business Advisors, precisely Experienced Company Secretaries.
One Person Company is registered under the Companies Act, 2013 and regulated by the Ministry of Corporate Affairs (MCA) with its extended hand called Registrar of Companies (RoC) of the respective states where the OPC will have its registered office address.
To register your start-up as One Person Company, there are certain set of documents required to begin with the registration procedure of One Person Company under the regime of Central Registration Centre (MCA).
You will be glad to know that most of the documents which are filed with the Incorporation Department of MCA called Central Registration Center (CRC) are drafted by us for your convenience. List of documents required from your end:
Identity Proof is required for the shareholder and director(s). Identity Proof has to be PAN Card copy. Note that a foreign national cannot incorporate an OPC. The Document must be self-attested.
Two Address Proofs are required for proposed shareholder and director(s). First is Driving License/ Passport/ Voter ID and while Second can be Bank Statement/ Electricity Bill/ Mobile Bill/ Telephone Bill.
Mobile Number and E-mail ID are required and the same shall belong to the promoter only and not of any professional or closed relatives too. Further, one email address of proposed Company is also required.
Educational Qualification of the proposed directors is to be provided. However, no proof for the educational qualification is required. The CRC (MCA) does not ask for its copies to be attached with the incorporation documents.
A recent copy of the Electricity Bill/ Gas Bill/ Mobile Bill/ Telephone Bill is required. A rental agreement or lease/sale deed along with NOC from the landlord with his/her consent to use the office as a registered office is also required. Rent Agreement would not be required if the place is in the name of any of the directors.
Finally, based on the above documents provided we prepare the drafts documents as per the company law which are required to be submitted to CRC (MCA). At CCL, we make it simple with our experience and knowledge of regular OPC Company Registration for you. You are not required to visit any place and we will complete the company registration procedure at the comfort of your home as the process is completely online.
Note: In addition to the above documents, you need to share with us the desirable company name and we will check its availability. Scope of the company, proposed share capital and place of business are some of the basic information we do require from your end.
The OPC Company Registration is a legal process requiring knowledge of company law as well as attestation service by a Professional who must be either Company Secretary or Chartered Accountant or Cost Accountant. It is always prudent to consult a professional than a consultant in the company registration journey to make it seamless with zero apprehension of wrong submission of documents and declaration. At Compliance Calendar LLP, we have dedicated team for registration of companies anywhere in India. Recently, the MCA changed the Incorporation procedure to include DIN allotment, Issuance of PAN, TAN, GST, EPFO, ESIC, Profession Tax (only in Maharashtra) and Opening of Bank Account. The registration is done through Spice+ which has basically two parts:
Name Reservation (Applicable to New Companies only)
Book a free consultation with (OPC) Company Registration Professional at Compliance Calendar LLP today and do not let your dreams of becoming an entrepreneur take halt in the way to success.
Section 2(62) of the Companies Act, 2013 define “One Person Company” as a company which has only one person as member.
“Resident in India” means a person who has stayed in India for a period of not less than one hundred and eighty-two days during the immediately preceding one calendar year.
The Companies Act, 2013 classifies companies on the basis of their number of members into One Person Company, Private Company and Public Company. As stated above, a private company requires a minimum of 2 members. In other words, a One Person Company is a kind of private company having only one member. Section 3(1)(c) lays down that a company may be formed for any lawful purpose by one person, where the company to be formed is to be One Person Company that is to say, a private company. In other words, one-person company is a kind of private company.
A One-person company shall have a minimum of one director. Therefore, a One Person Company will be registered with one member and one director. By virtue of section 3(2) of the Act, an OPC may be formed either as a company limited by shares or a company limited by guarantee; or an unlimited liability company.
One of the best features of One Person Company registration is that the liability of the person who invests money into the business (also known as shareholder) will be limited to the amount invested by him/her which also means that personal property of the promoter will remain safe and secure. This limited liability builds confidence of young entrepreneurs to fulfil their dream of having their own Company.
The separate legal entity feature gives your company to keep yourself and the company at length recognizing its own separate identity. In the eyes of law, Company and its Representatives are different personalities and Company can sue and be sued on its own name without the name of its shareholder or director(s).
This is what makes the registered OPC different from proprietorship where on the death of proprietor, the firm ceases to exist but in case of registered company, even the death of director(s)/shareholder cannot stop the company to exist.
During the lifetime of the Company, if the shareholder wishes to exit from the company, he/she can do so by simply transferring his/her shares. It is very easy to transfer shares to other person by way of share transfer arrangements. This gives the shareholder the freedom to take informed decision whether to continue or not at any given point of time.
Company being a legal person can own property on its own name through its Legal Representative. The Property includes Intellectual Property (IPR) such as Trademark, Copyright, Patent and Design too. Company can also mortgage property the same way as a natural person to banks or any other financial institution.
Company being a Legal Person, when there comes a requirement to borrow capital or funds, it can be done through various modes of borrowing. Some of them could be Private Equity/ Angel Investor/ Venture Capitalist/ Short-term capital from Directors or their Relatives and Debts through Banks or FIIs.
Any Investor who is looking to make investment generally prefers One Person Company than the old Proprietorship Firm because conversion of OPC to Private Limited Company is easy. This is what makes a One Person Company investment ready. A Private Limited Company can also get itself registered under DPIIT (Earlier DIPP) Scheme of Start-up India under Ministry of Commerce & Industry, Govt. of India to enjoy numerous benefits which the Indian Govt comes up time to time.
One Person Company is the most sought form of Company Registration in India after Private Limited Company. It is the most preferred form of business and regulated by Ministry of Corporate Affairs (MCA) under Companies Act, 2013. A One Person Company is a type of business structure registered with MCA to give a separate legal existence to the business different from its directors and shareholders. This means that a company continues to exist even after the death of any member/director in the company.
A minimum of one person is required to form a One Person Company. It is not even important that member should be different from director. In a company, the same person can act as Member and Director both at the same time. Member and Shareholder are one in the same. That means an individual may become shareholder and director at the same time. However, you can always increase the number of director from more than one.
There is no minimum capital requirement to form a One Person Company. Startups may choose on their own how much paid-up capital they want to keep during the Company Registration. However, generally one lac capital is kept as per most companies registered data.
Name reservation is quite simple and easy to obtain. Our professionals will guide and help you in choosing the best suitable name of your OPC company according to name guidelines of company incorporation and trademark laws.
Director Identification Number (DIN) is a unique number assigned by the MCA to Individuals allowing them to become Director in any Company or Designated Partner in an LLP (In LLP, it is called DPIN). Any natural person above the age of 18 years can become the director in the company after getting DIN. There are no specific regulations provided in terms of citizenship or residency, also a foreign national can become a director. However, it is important note here that a foreign national cannot incorporate an OPC.
Digital Signature Certificate (DSC) is the digital equivalent (electronic format) of physical or paper-based certificates. Likewise, a digital certificate can be presented electronically to prove one's identity, to access information or services on the Internet or to sign certain documents digitally. SPICE+ forms are filed for online company registration after affixing the DSC. The subscribers to MOA & AOA shall possess DSC for submitting e-forms for incorporation.
Memorandum of Association (MOA) is a legal document prepared during the registration process of a company to define its relationship with shareholders and contains the main objectives of the company. Articles of Association (AOA) are by-laws of the company and it regulates management of a company and creates certain rights and obligations between the members and the company.
Yes, Startups get benefits of getting themselves registered as a Start-up under DPIIT and avail many benefits launched by the Govt. Corporates recognize One Person Company very well and the foremost advantage is of credibility and good reputation of the established business in the eyes of Investors, Incubation Centres, Financial Institutions and Customers at large. If the business makes good revenue, they can easily convert the OPC to normal Private Limited Companies.
Post incorporation compliances are easy and manageable. Companies Act, 2013 provides a lot of exemptions to private Companies especially OPCs due to which compliances becomes easy and handy. At CCL, Professionals are there to manage each and every compliance of your OPC Business. Get in touch with us to know the post incorporation compliance especially for commencement of business.
No, With Compliance Calendar LLP, no compliance is complicated. Our team is here to manage each and every thing when it is about managing company compliances.
We are the market experts in registration and compliance of OPC Private Limited. We can help you with end to end services in One Person Registration anywhere in India. Company Registration is a legal process and therefore it is prudent to assign the work to a professionally managed firm like CCL.
Not to worry at all! A Professional from our experienced team will resolve all your queries. Our OPC Registration Experts will give you the best advice without any consultancy fees. Write to us at email@example.com or WhatsApp/Call us +91-9988424211 and we will be more than happy to be partner in your entrepreneurial journey.